TORONTO, ONTARIO, Nov 05 (MARKET WIRE) --
Calloway Real Estate Investment Trust (TSX: CWT.UN) is pleased to report
its results for the third quarter ended September 30, 2009.
Highlights of the Quarter:
-- Leased 78,000 square feet of previously vacant space, improving
portfolio occupancy to 98.8%
-- Renewed 86,000 square feet of leases, the year-to-date renewed rate over
90%, with average increases over in place rent of over 7%
-- Raised $175 million through the issuance of $50 million of equity and
$125 million of term financing
-- Arranged a two year $160 million revolving operating facility
-- Invested $45.3 million to complete earn outs and developments of 200,699
square feet of leaseable area
-- Net income decreased by $9.9 million to $6.7 million over the same
period in 2008, a result of lower gains on property sales, increased
interest expense and a decrease in interest revenue
"Strong centres deliver strong results," said Mr. Simon Nyilassy,
President and CEO. "So far this year, we have filled 250,000 square feet
of previously vacant space representing over 75% of the vacancies arising
this year as a result of the economic downturn. In addition, we have
opened 200,000 square feet of new stores with tenants such as Winners,
Lowes, Golf Town and Dollarama. With one quarter of the year still
remaining, we have already brought our occupancy levels close to the 99%
plus level that we enjoyed for the past 4 years."
As at September 30, 2009, Calloway's $4.1 billion real estate portfolio
includes 22.4 million square feet of built gross leasable area and 5.4
million square feet of future developable area in 117 operating and 10
development properties.
Developments completed during the quarter comprised approximately 200,699
square feet of leasable area at a cost of $45.3 million.
Calloway raised $175 million through the issuance of 3.2 million units at
$15.50 for gross proceeds of $50 million and $125.4 million term
financing to repay maturing mortgages and reduce indebtedness. The term
mortgages have an average term of 4.4 years and weighted average interest
rate of 5.5%. Also during the quarter, Calloway negotiated a new, two
year, $160 million operating line to replace two maturing operating
facilities.
As a result of these financing activities, Calloway has reduced its
debt-to-gross book value (non-GAAP measure) to 54.7% from 55.2% and has
sufficient capital resources to address its financial obligations through
to 2011.
Comparing results to third quarter 2008, continued high occupancy levels
of over 98.8%, as well as Calloway's acquisition and development program,
helped the income-producing portfolio to generate revenue of $113.4
million, a $3.2 million increase. Net operating income (non-GAAP measure)
of $74.2 million increased $3.0 million or 4.2%. Income from continuing
operations decreased $2.6 million mainly as a result of increased
interest expense and property operating costs. Cash flow as measured by
Funds from Operations (FFO - a non-GAAP measure) totalled $39.6 million,
a decrease of $3.2 million or 7.5%. The results were negatively impacted
by the expected increased interest expense from new financings and lower
interest income from repaid mezzanine loans offset by completed
acquisitions and developments generating revenues of $4.1 million. FFO
per unit (fully diluted) was $0.407 compared to $0.451. "Our decision to
significantly enhance our liquidity at a time when debt costs were
expensive will impact cash flow in the short-term," said Nyilassy, "but
this has kept Calloway on a strong financial footing during the economic
downturn and has us better positioned for a recovery." The Trust's
quarterly distribution of $0.387 per unit represents a payout ratio (to
FFO) of 95% compared to 85.8% in 2008.
The non-GAAP measures identified in this Press Release do not have any
standardized meaning prescribed by Canadian generally accepted accounting
principles ("GAAP") and are therefore unlikely to be comparable to
similar measures presented by other issuers. These non-GAAP measures are
more fully defined and discussed in the management discussion and
analysis of Calloway for the three-months ended September 30, 2009,
available on SEDAR website at www.sedar.com.
Full reports of the financial results of the Trust for the three months
ended September 30, 2009 are outlined in the unaudited consolidated
financial statements and the related management discussion and analysis
of Calloway, available on the SEDAR website at www.sedar.com. In
addition, supplemental information is available on Calloway's website at
www.callowayreit.com.
Calloway will hold a conference call on Friday, November 6, 2009 at 10:00
a.m. (ET). Participating in the call will be members of Calloway's senior
management.
Investors are invited to access the call by dialing 1-800-250-4877. You
will be required to identify yourself and the organization on whose
behalf you are participating. A recording of this call will be made
available Friday November 6, 2009 beginning at 12:00 p.m. (ET) through to
11:59 p.m. (ET) on Friday November 13 14, 2009. To access the recording,
please call 1-877-289-8525 and use the reservation number 4176583#.
The Toronto Stock Exchange neither approves nor disapproves of the
contents of this Press Release.
Contacts:
Calloway Real Estate Investment Trust
Simon Nyilassy
President and Chief Executive Officer
(905) 326-6400 ext. 7649
Calloway Real Estate Investment Trust
Bart Munn
Chief Financial Officer
(905) 326-6400 ext. 7631
Copyright 2009, Market Wire, All rights reserved.
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